Guideline For Preperartion of Qualification Criteria ACQMP PDF

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Government of Nepal

Ministry of Physical Infrastructure and Transport

Department of Roads

GUIDELINES ON PREPARATION AND EVALUATION OF POST- QUALIFICATION CRITERIA

IN

PROCUREMENT OF WORKS

June, 2015

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Table of Contents
1. Eligibility Criteria .................................................................................................................................................. 4
1.1 Setting up the Criteria ...................................................................................................................................... 4
1.2 Evaluation Method........................................................................................................................................... 4
2. Litigation ................................................................................................................................................................ 5
2.1 Setting up the Criteria ...................................................................................................................................... 5
2.2 Evaluation Method........................................................................................................................................... 5
3. Financial Situation ................................................................................................................................................. 6
3.1 Historical Financial Performance .................................................................................................................... 6
3.1.1 Setting up the Criteria .............................................................................................................................. 6
3.1.2 Evaluation Method................................................................................................................................... 6
3.2 Average Annual Construction Turnover ......................................................................................................... 6
3.2.1 Setting up the Criteria .............................................................................................................................. 6
3.2.3 Evaluation Method.................................................................................................................................... 8
3.3 Financial Resources .......................................................................................................................................... 8
3.3.1 Setting up the Criteria ............................................................................................................................... 8
3.3.2 Criteria specified in the Section III Qualification Requirements ............................................................... 9
3.3.3 Evaluation Method.................................................................................................................................... 9
4. Experience ............................................................................................................................................................. 9
4.1 General Work Experience ................................................................................................................................ 9
4.1.1 Setting up the Criteria ............................................................................................................................... 9
4.1.2 Criteria specified in the Section III Qualification Requirements ............................................................... 9
4.1.3 Evaluation Method................................................................................................................................. 10
4.2 Specific Experiences ....................................................................................................................................... 10
4.2.4 Specific Work Experience ........................................................................................................................ 11
4.2.5 Evaluation Method.................................................................................................................................. 16
5. Personnel Requirement ....................................................................................................................................... 16
5.1 Setting up the Criteria .................................................................................................................................... 16
5.2 Criteria specified in the Bidding Data ............................................................................................................ 17
5.3 Evaluation Method......................................................................................................................................... 17
4. Equipment ........................................................................................................................................................... 17
6.1 Setting up the Criteria .................................................................................................................................... 17
6.2 Criteria specified in Qualification Requirements ........................................................................................... 18
6.3 Evaluation Method......................................................................................................................................... 19
7 Use of Multiple Contracts Criteria ....................................................................................................................... 19

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7.1 Slice and Package ........................................................................................................................................... 19
7 .2 Average Annual Construction Turnover........................................................................................................ 20
7.3 Specific work experience ............................................................................................................................... 20
7.4 Liquid Asset and or Credit Facilities ............................................................................................................... 20
7.5 Personnel ....................................................................................................................................................... 21
7.6 Equipment ...................................................................................................................................................... 21

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GUIDELINES ON PREPARATION AND EVALUATION OF QUALIFICATION CRITERIA

Bid Document requires bidders to be qualified by meeting predefined, precise minimum requirements.
The method entails setting pass-fail criteria, which, if not met by the bidder, results in disqualification. It
will therefore be necessary to ensure that a bidder’s risk of having its bid rejected on grounds of
qualification is removed if due diligence is exercised by the bidder during bid preparation. For that
purpose, clear-cut, fail-pass qualification criteria need to be specified in order to enable bidders to make
an informed decision whether to pursue a specific contract and, if so, either as a single entity or in joint
venture. The criteria adopted must relate to characteristics that are essential to ensure satisfactory
execution of the contract, and must be stated in unambiguous terms.

This guide contains the issues to be considered on fixing the criteria that the Employer has to specify in
the bidding document and have to use to evaluate bids and qualify Bidders.
Always keep the requirement simple. Do not be restrictive in specifying requirements (e.g., surface
dressing etc.) as the wordings being used may not be universally used terminology.

1. Eligibility Criteria

1.1 Setting up the Criteria

Only the bids of bidders that meet the eligibility requirement are considered for further evaluation. The
following eligibility criteria have been specified in Section III Qualification Requirements as per ITB 4.1
(a) of the bidding document.
Bidder’s Eligibility Requirements are:

i. Company Registration Certificate


ii. VAT and PAN Registration Certificates (For Nepalese Bidders only)
iii. Tax Clearance Certificate (For Nepalese Bidders only)or Submissions of Tax
Returns
iv. Joint Venture Authorization/ Agreement (if any)
v. Power of Attorney
vi. Other documents as needed

Although most of the eligibility criteria specified above are straightforward, care must be taken in
specifying the fiscal year in criteria (iii) above. Income Tax Act, 2058 (2002) requires income tax return
to be submitted to the Inland Revenue Office within three month of the end of fiscal year. Furthermore,
the department may extend the time-limit for submission of the income return not exceeding three
months, if the reasons are reasonable.

Therefore, if the invitation for bids are being advertised within the first quarter of the fiscal year, instead
of the immediate past fiscal year previous fiscal year be specified (i.e., if the advertisement is being
published in Bhadra 2070, the fiscal year to be specified would be 2068/69).

1.2 Evaluation Method

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The bidder has to satisfy all the eligibility criteria specified above areto be considered for further
evaluation. A bidder not meeting any of the criteria has to be treated as non-responsive.

Financial Comparison chart will be prepared only for those bidders two meet the eligibility criteria, Bid
validity/Bid Security requirement and whose bids are substantially responsive. All adjustment will be
made and the lowest bidder will be determined. The lowest evaluated substantially responsive bidder
will then be checked against the qualification criteria specified in the bidding document to find out
whether it fulfills the criteria or not. If the bidder fulfils the qualification criteria then it will be
recommended for award of the contract. If not, the next ranked bidder will be checked whether it meets
the criteria or not and so on.

The criteria are to be fulfilled by a bidder submitting a substantially responsive bid in order to be qualified
to be awarded a contract are described here in subsequent sub- heads.

2. Litigation

Litigation is the term used to describe proceedings initiated between the employer and contractor two
to enforce a claim arose during the execution of the contract. Litigation is typically settled by agreement
between the two parties, but may also be heard and decided by a jury or judge in court.

Contrary to popular belief, litigation is not simply another name for a lawsuit. Litigation includes any
number of activities before, during, and after a lawsuit to enforce a legal right. In addition to the actual
lawsuit, pre-suit negotiations, arbitrations, facilitations and appeals may also be part of the litigation
process.

2.1 Setting up the Criteria


All pending litigation shall be treated as resolved against the Bidder and so shall in total not represent
more than 50% percent of the Bidder's net worth. Normally, all pending litigation shall not exceed 100%
of bidder’s net worth.

Criteria Compliance Requirements Documents

Requirement Single Joint Venture Submission


Entity Requirements
All EachPartner OnePartner
PartnersCombined

2.1.1 Pending Litigation

All pending litigation must meet not applicable must meet not Form LIT - 1
shall be treated as requirement by requirement by applicable
resolved against the itself or as itself or as partner
Bidder and so shall in partner to past to past or existing
total not represent or existing JV JV
more than 50%
percent of the
Bidder'snet worth.

2.2 Evaluation Method


Bidder should declarethe all pending Litigation in Form Lit-1. The total Litigation amount thus declared
shall not exceed the limit specified.

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3. Financial Situation

3.1 Historical Financial Performance

3.1.1 Setting up the Criteria

Under this criterion, the Bidder must demonstrate its net worth positive. Generally, the bidder is asked
to provide the audited Balance Sheet of last 3 to 5 years.

Criteria Compliance Requirements Documents

Requirement Single Joint Venture Submission


Requirements
Entity
All EachPartner OnePartner
PartnersCombine
d

2.3.1 Historical Financial Performance

Submission of audited must meet not applicable must meet not Form FIN - 1
balance sheets and income requirement requirement applicable with attachments
statements, for the last 3
years to demonstrate the
current soundness of the
Bidder's financial position.
As a minimum, a Bidder's
net worth calculated as the
difference between total
assets and total liabilities
should be positive.

3.1.2 Evaluation Method

The financial information provided by a Bidder should be reviewed in its entirety to allow a truly
informed judgment, and the pass-fail decision on the financial position of the Bidder should be given on
this basis. Balance sheet of the past three to five year’s period which shall be decided according to the
nature of the work.

3.2 Average Annual Construction Turnover


3.2.1 Setting up the Criteria

The Annual Construction Turnover (AACT) is the total certified payment received by the firm for
construction contracts in progress or completed in a year. Bidding data specifies that the annual turnover
of best three years out of the turnover of ten years is to be considered. The standard bid document
requires the turnover and specific experience to be brought to the current value using the National
wholesale Price Index – Overall Index published by Nepal Rastra Bank.

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The amount stated should normally not be less than 1.5 * V/T, the estimated annual turnover in the subject
contract based on a straight-line projection of the Employer's estimated cost (V), over the contract duration
(T) in year. When the contract duration is less than one year, the contract duration (T) is to be considered
one year for the calculation of AACT requirement. It means that for a contract of duration less than one
year, the AACT to be specified in the bidding data will be 1.5 times the Employer’s Estimate only.

For example:

Case 1

Estimate = NRs. 30 million; Contract Period = 15 months = 15/12 years = 1.25 Years. Average Annual
Construction Turnover = 1.5 * V/T = 1.5 * NRs. 30 million/1.25 = NRs. 36 million.Therefore, in Case 1
scenario the amount to be specified for AACT is NRs. 36 million.
Case 2

Estimate = NRs. 18 million; Contract Period = 9 months = 9/12 years = 0.75 Years. AACT = 1.5 * V/T = 1.5
* NRs. 18 million/0.75 = NRs. 36 million.However, as the contract period is less than one year, T should be
taken as 1 year as mentioned above. Now, the requirement of AACT will be = 1.5 * NRs. 18 million/1 =
NRs. 27 million. Therefore, in Case 2 scenario the amount to be specified for AACT is NRs. 27 million.

3.2.2 Criteria specified in the SectionIII Qualification Requirements

Criteria Compliance Requirements Documents

Requirement Single Joint Venture Submission


Requirements
Entity
All EachPartner OnePartner
PartnersCombine
d

2.3.2 Average Annual Construction Turnover

Minimum average annual must meet must meet must meet must meet Form FIN -2
construction turnover of requirement requirement 25% 40%
NRS
of the of the
…..…..……………………..
requirement requirement
calculated as total certified
payments received for
construction contracts in
progress or completed,
within best three years out of
last ten years.

Note:

1. While calculating turnover amount, only the net amount worked out after deducting the amount
for VAT shall be computed and such amount shall be adjusted to the present value by applying
wholesale price index of Nepal Rastra Bank.
2. The evidence of audit report and respective tax clearance certificate may be needed for
verification and consideration in evaluation of turnover along with respective J/V agreement.

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3.2.3 Evaluation Method

Annual turnover of a firm is obtained from the audit report of the firm for a particular year. If the firm has
also worked in joint venture with other firm, then the firm’s turnover is to be calculated based on its
share in that work. All such turnovers are to be added together to get its annual turnover. Each year’s
turnover are to be brought to the current value using the Wholesale Price Index – Overall Index
published by Nepal Rastra Bank. Then, best three years turnover are to be taken in arriving at the
Average Annual Construction Turnover. The turnover calculation should exclude VAT. It should be
remembered that turnover from construction works is only to be considered.

The bidder, as an individual, has to meet the specified requirement to qualify. However, if the bidder is a
joint venture, it has to meet the total requirement and one of the partner has to meet 40% of the specified
requirement. In addition, each partner is also required to meet 25% of the specified requirement. If
anyone fails to meet this criterion, the bidder shall be disqualified.

3.3 Financial Resources


3.3.1 Setting up the Criteria

Under this criterion, the Bidder must demonstrate the capacity to meet the financial resource
requirements of the contract. The Bidder must demonstrate access to, or availability of, financial
resources such as liquid assets, unencumbered real assets, lines of credit, and other financial means,
net of other contractual commitments and exclusive of any contractual advance payments, to meet the
financial resource requirements of the contract. Liquid Assets mean cash and cash equivalents, short-
term financial instruments, short term available-for-sale securities, marketable securities, trade
receivables, short-term financing receivables and other assets that can be converted into cash within
one year.

The liquid assets and/or credit facilities requirement is calculated in the following manner:

Total time needed by the Employer to pay a contractor's invoice, allowing for (a) the actual time consumed
for construction, from the beginning of the month invoiced, (b) the time needed by the Engineer to issue the
monthly payment certificate, (c) the time needed by the Employer to pay the amount certified, and (d) a
contingency period of one month to allow for unforeseen delays.

The total period should not exceed six months. The assessment of the monthly amount should be based on
a straight-line projection of the estimated cash flow requirement over the particular contract period,
neglecting the effect of any advance payment and retention monies. The period is generally 4 to 6 months.

For example:

Estimate = NRs. 30 million; Contract Period = 15 months, Liquid Asset and/ Credit Facilities Requirement
per month = NRs. 30 million/15 = NRs. 2 million/month (based on straight line projection).
According to the guideline given above the minimum Liquid Asset and/ Credit Facilities Requirement to be
specified is between NRs. 8 million to NRs. 12 million. For projects where there is no Project Manager
(Engineer), the time required for payment of interim payment certificate will be less. Therefore, specifying a
minimum requirement of NRs. 8 million is reasonable.

The Qualification Requirements requires the one partner to meet a minimum of 40% and each partner to
meet a minimum of 25% of this criterion.

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3.3.2 Criteria specified in the Section III Qualification Requirements

Criteria Compliance Requirements Documents

Requirement Single Joint Venture Submission


Requirements
Entity
All EachPartner OnePartner
PartnersCombine
d

2.3.3 Financial Resources

Using Forms FIN - 3 and must meet must meet must meet must meet Form FIN - 3
FIN - 4 in Section IV requirement requirement 25% of the 40% of the and Form FIN -
(Bidding Forms) the Bidder requirement requirement 4
must demonstrate access to,
or availability of, financial
resources such as liquid
assets, unencumbered real
assets, lines of credit, and
other financial means, other
than any contractual advance
payments to meet :
 The following cash-flow
requirement, NRs. …..

3.3.3 Evaluation Method

Normally the working capital, which is the difference between the current asset and the current
liabilities, and line of credit is added together to arrive at the bidder’s resource in meeting the
requirement. The Working Capital (latest) is to be calculated from the audit report.

The bidder, as an individual, has to meet the specified requirement to qualify. However, if the bidder is a
joint venture, it has to meet the total requirement and the partner in charge has to meet 40% of the
specified requirement. In addition, each partner is also required to meet 25% of the specified requirement.
If anyone fails to meet this criterion the bidder will be disqualified.

4. Experience

4.1 General Work Experience

4.1.1 Setting up the Criteria


The time period is normally 5 years or more, but may be reduced to not less than 3 years, according to
the nature of works. The requirement is not to be met by a single entity but by each partner in case the
bid is submitted by a joint venture. Specifying the requirement on the lower side will provide opportunities
for firms with only a short record of experience.

4.1.2 Criteria specified in the Section III Qualification Requirements

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Criteria Compliance Requirements Documents

Requirement Single Joint Venture Submission


Requirements
Entity
All EachPartner OnePartner
PartnersCombine
d

2.4.1 General Construction Experience

Experience under must meet not applicable must meet not Form EXP - 1
construction contracts in the requirement requirement applicable
role of contractor,
subcontractor, or
management contractor for at
least the last 5 years prior to
the applications submission
deadline.

4.1.3 Evaluation Method

Normally this will be checked from the registration date. In case the bidder is a joint venture, each
partner of the joint venture should fulfill this criterion.

4.2 Specific Experiences

Specific construction experience in contracts of similar size and nature required to be fulfilled by the
bidder is specified in Section III, Evaluation and Qualification Criteria of Bid Document requires the
number of work and the value of work to be specified in Qualification Requirements. Only work that has
been completed within the last ten years are to be considered.

Normally, experience of one to three works can be specified depending on the size and complexity of the
subject contracts. The selection of number of contract depends upon the availability of bidders in the
market meeting the requirement. With a high number of potential bidders satisfying the criteria, higher
number of similar contracts may not limit competition.

Usually 80% of the estimated value of the subject contract is specified and substantially completed works
are only considered. However, as the qualification requirements specifies that “to comply with this
requirement, works cited shall be at least 80 percent complete”, the total estimated cost has to be
specified in the Bidding Data. This is required because if only 80% of the contract amount is specified,
any work that is 80% complete will meet the criteria.

The turnover and specific experience to be brought to the current value using the Wholesale Price Index
– Overall Index published by Nepal Rastra Bank.
Although the requirement of construction Experience in Key Activities is not specifically specified in the bid
document, this criterion is generally specified to test Bidder’s experience in performing highly specialized
construction activities. Normally, construction experience in key activities is not required for simple works. If
the work consists of specialized and/or critical activities, only then construction experience in key activities
should be included in the criteria. Under this criterion, production rate(s) required for the key activity or

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activities in the contract are specified. The rates should be about 80% of the estimated production rates of
the key activity or activities in the contract as needed to meet the expected construction schedule.
Ideally, if the contract is for asphalt concreting and the quantity is, say 3,000 MT, to be completed within 12
months period then “experience of asphalt concrete work of 2,400 MT in a year within the last ten year”
should be specified (2,400 MT being 80% of 3,000 MT). However, the production rates are not normally
specified in the experience certificates and are it not correctly assesses the production rates from the
information available in the experience certificates. Therefore, only the quantity of key activity will be
specified in the criteria (i.e., 3,000 MT in this case)

Only the estimate amount excluding VAT is to be entered in Qualification Requirements.For example:
Estimate = NRs. 30 million; Contract Period = 15 months. Specific Work Experience Requirement = NRs.
24 million.Please note that Specific Work Experience Requirement is not related to contract period.

4.2.3 Nature and complexity of project regarding specific experience


The bidder bidding in a joint venture may have different contractors with different capacities and may
have different experiences. The members of the joint ventures if not having the specific experiences in
complex and relatively large construction amounts might have difficulties in executing the contracts. To
overcome such discrepancies, the specific experience of each of the joint venture partners shall be
required.
In setting out the experience requirement of each partner of the joint venture,the estimated amount, the
natureand complexity of work shall be taken into consideration. In such situation, following threshold
basedon estimated cost, natureand complexity work shall be taken into consideration.
Generally, the roadwork’s where major works are earthwork, at least one member of the joint venture
must have accomplished 100% of the roadwork of said amount and the partners of joint venture must
have accomplished at least the amount as specified in percentage as each partner. However, this
requirement is based on the size nature and complexity of the construction work.

4.2.4 Specific Work Experience

Specific Work Experience as sole prime or management or partner of joint venture association or sub
contractor. The Clause 2.4 of Section III Qualification Requirements Bidding Document has made the
provision of specific work experience. The provisions made as per this provision are2.4.1 (a) Contracts of
Similar Size and Nature: and 2.4.1 (b) Construction Experience in Key Activities.

I. Road Construction Works:

a) Road works with estimated cost less than 100 million (type of works: all type of Roadwork)

Criteria Compliance Requirements Documents

Requirement Single Joint Venture Submission


Requirements
Entity
All EachPartner OnePartner
PartnersCombine
d

2.4.2 Specific Construction Experience

(a) Contracts of Similar Size and Nature

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Participation as Prime must meet must meet Not Must meet Form EXP - 1
contractor, management requirement requirement applicable 100 % of the
contractor, or subcontractor, Requirements
in at least ………. contracts
within the last ten (10) years,
each with a value of at least
NRS …..…. that have been
successfully or are
substantially completed and
that are similar to the
proposed works.

Note:
1. At least one member of the joint venture must have accomplished Road works of NRS
………………………. (Without VAT)in single contract.
2. The substantially completion of the work is the 80% completion of work scope as specified in the
contract and shall be certified by the employer.
3. In case of sub-contractor, subcontracting shall be certified and issued by the Employer or
Consultant.
4. While calculating the amount of specific experience, only the net amount worked out after
deducting the amount for VAT shall be computed and such amount shall be adjusted to the
present value by applying wholesale price index of Nepal Rostra Bank.

(b) Construction Experience in Key Activities

For the above or other contracts must meet all must meet all Not Must meet Form
executed during the period stipulated in requirements requirements applicable 100% of the EXP -
2.4.2(a) above, a minimum Requirements 2(b)
construction experience in the
following key activities :
……………………………………….

Note:

1. At least one member of the joint venture must have accomplished ………………… of …………………..
works in single contract.

2. The substantially completion of the work is the 80% completion of work scope as specified in the
contract and shall be certified by the employer.

b) Roadwork with estimated cost between Rs. 100 millionto Rs. 250 million(Type of Roadwork:
Bituminous Roadwork including Asphalt concrete, SBSD, DBSD, Premix Carpeting, Resealing,
Ottaseal etc.)

2.4.2 Specific Construction Experience

(a) Contracts of Similar Size and Nature

Participation as Prime contractor, must meet must meet Must meet 25% Must meet 100 Form
management contractor, or requirement requirement of the % of the EXP - 1
subcontractor, in at least ………. Requirements Requirements

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contracts within the last ten (10)
years, each with a value of at least
NRS …..…. that have been
successfully or are substantially
completed and that are similar to
the proposed works.

Note:

1. At least one member of the joint venture must have accomplished Road works of NRS
………………………. (Without VAT)in single contract and each member of the Joint Venture must
have accomplished road works of at least NRS. ………………………………………in a single
contract.
2. The substantially completion of the work is the 80% completion of work scope as specified in the
contract and shall be certified by the employer.
3. In case of sub-contractor, subcontracting shall be certified and issued by the Employer or
Consultant.
4. While calculating the amount of specific experience, only the net amount worked out after
deducting the amount for VAT shall be computed and such amount shall be adjusted to the
present value by applying wholesale price index of Nepal Rastra Bank.

(b) Construction Experience in Key Activities

For the above or other contracts must meet all must meet all Must meet Must meet Form
executed during the period stipulated requirements requirements 25% of the 100% of the EXP -
in 2.4.2(a) above, a minimum Requirements Requirements 2(b)
construction experience in the
following key activities :
……………………………………..

Note:

1. At least one member of the joint venture must have accomplished ………………… of
………………….. works in single contract and each member of the Joint Venture must have
accomplished road works of at least …………………………in a single contract.

2. The substantially completion of the work is the 80% completion of work scope as specified in the
contract and shall be certified by the employer.

c) Roadwork with estimated cost more than 250 million (Type of Roadwork: Bituminous
Roadwork including, Asphalt concrete, SBSD, DBSD, Premix Carpeting, Resealing, Ottaseal
etc.)

2.4.2 Specific Construction Experience

(b) Contracts of Similar Size and Nature

Participation as Prime contractor, must meet must meet Must meet 15% Must meet 100 Form
management contractor, or requirement requirement of the % of the EXP - 1

13
subcontractor, in at least ………. Requirements Requirements
contracts within the last ten (10)
years, each with a value of at least
NRS …..…. that have been
successfully or are substantially
completed and that are similar to
the proposed works.

Note:

1. At least one member of the joint venture must have accomplished Road works of NRS
………………………. (Without VAT)in single contract and each member of the Joint Venture must
have accomplished road works of at least NRS. ………………………………………in a single
contract.
2. The substantially completion of the work is the 80% completion of work scope as specified in the
contract and shall be certified by the employer.
3. In case of sub-contractor, subcontracting shall be certified and issued by the Employer or
Consultant.
4. While calculating the amount of specific experience, only the net amount worked out after
deducting the amount for VAT shall be computed and such amount shall be adjusted to the
present value by applying wholesale price index of Nepal Rastra Bank.

(b) Construction Experience in Key Activities

For the above or other contracts must meet all must meet all Must meet Must meet Form
executed during the period stipulated requirements requirements 15% of the 100% of the EXP -
in 2.4.2(a) above, a minimum Requirements Requirements 2(b)
construction experience in the
following key activities :
…………………………………….

Note:

1. At least one member of the joint venture must have accomplished ………………… of
………………….. works in single contract and each member of the Joint Venture must have
accomplished road works of at least …………………………in a single contract.
2. The substantially completion of the work is the 80% completion of work scope as specified in the
contract and shall be certified by the employer

II. Bridge Construction Works:

A) Bridge Construction work: Length of Bridge less than or equal to 50 m


Criteria Compliance Requirements Documents
Requirement Single Entity Joint Venture Submission
Requirements
All Partners Each Partner One Partner
Combined
2.4.2 Specific Construction Experience

Contracts of Similar Size and nature


Participation as a prime contractor, Must meet Must meet NA At least one (1) no. of
management contractor or sub- requirement requirement motorable bridge of :
contractor in at least 1 (one)
number of motorable bridge that a) Total length more

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have been completed or than or equal to
substantially completed within the the length of
last 10 (ten) years: bridge specified
and,
a) Total length more than or
equal to the length of bridge b) One of the Span
specified and more than or
b) One of the Span more than or equal to the span
equal to the span of the of the bridge
bridge specified or 20 m specified or 20 m
whichever is less. whichever is less.

B) Bridge Construction work: Length of Bridge more than 50 m and less than or equal to 100 m
Criteria Compliance Requirements Documents
Requirement Single Entity Joint Venture Submission
Requirements
All Partners Each Partner One Partner
Combined
2.4.2 Specific Construction Experience
Contracts of Similar Size and nature
Participation as a prime contractor, Must meet Must meet At least 1 (one) no. of At least 1 (one) no. of
management contractor or sub- requirement requirement motorable bridge with motorable bridge with
contractor in at least 2(two) a) length more than a) Total length more
numbers of motorable bridge that or equal to the half than or equal to
have been completed or the length of the length of
substantially completed within the Bridge specified bridge specified
last 10 (ten) years: and and
b) One of the Span b) One of the Span
a) Total length more than or more than or equal more than or
equal to the length of bridge to the span of the equal to the span
specified and, bridge specified or of the bridge or
b) One of the Span more than or 20 m whichever is 20 m whichever
equal to the span of the less. is less.
bridge specified or 20 m
whichever is less.

C) Bridge Construction work: Length of Bridge more than 100 m


Criteria Compliance Requirements Documents
Requirement Single Entity Joint Venture Submission
Requirements
All Partners Each Partner One Partner
Combined
2.4.2 Specific Construction Experience
Contracts of Similar Size and nature
Participation as a prime contractor, Must meet Must meet At least 1 (one) no. of At least 1 (One) no. of
management contractor or sub- requirement requirement motorable bridge with: motorable bridge with:
contractor in at least 3(three)
numbers of motorable bridge that a) Length more than a) 150 m or length
have been completed or or equal to the half of specified
substantially completed within the the length of bridge whichever
last 10 (ten) years: specified bridge or is less and,
75 m whichever is b) One of the Span
a) 150 m or length of specified less and, more than or
bridge whichever is less and, b) One of the Span equal to the span
b) One of the Span more than or more than or equal of the bridge
equal to the span of the to the span of the specified or 20 m
specified bridge or 20 m bridge specified or whichever is less.
whichever is less. 20 m whichever is
less.

Note:

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1. The substantially completion of the work is at least 80% completion of work scope and remarkably fit for
the purpose as specified in the contract and shall be certified by the employer.
2. In case of sub-contractor, sub-contracting shall be certified and issued by the employer or consultant.
3. While calculating the amount of specific experience, only the net amount worked out after deducting the
amount for VAT shall be computed and such amount shall be adjusted to the present value by applying
wholesale price index of Nepal Rastra Bank.
4. The bidder shall demonstrate completed bridge comprised of bridge foundation, Sub structure and Super
structure all complete.

D. Special type of Bridges

These types of bridges are:

1. Arch Bridge,
2. Balanced Cantilever Bridge,
3. Segmental construction of Bridge,
4. Cable stayed Bridge,
5. Any other bridge/s with span equal or greater than 75 m,
6. Any type of Pre- Stressed bridge with length more than 200 m,
7. Fly over or Elevated Bridge, and
8. Any other innovative type of Bridge.

The qualification criteria for such types of bridges shall be fixed and endorsed by the Department of Roads as per
the specialty of the bridges.

4.2.5 Evaluation Method

Only work completed within the last ten years (date of completion to be within ten years) is to be
considered. As specified in the Qualification Requirements that are 80% complete should be
considered. The contract size of the work being considered should be equal to or more than the amount
specified in the Qualification Requirements.

Summation of number of small value contracts (less than the value specified under requirement) to
meet the overall requirement will not be accepted.

Experience gained as a joint venture partner should also be considered. In case of a joint venture, the
specific work experience can be met by any of the joint venture partners as specified in the qualification
requirements. This requirement is for experience and one contract cannot be fractioned. Therefore, at
least one partner has to have one work with a value 100% of the amount specified in the Qualification
Requirements. In case of joint venture, the other partners of the joint venture must have completed
percentage specified or task specified of the specific work requirement and production of key activities
depending upon the type and complexity of works. If at least one partner of the JV fails to meet this
criterion, the bidder shall be disqualified.

5. Personnel Requirement

5.1 Setting up the Criteria

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The managerial and technical competence of a Contractor is largely related to key personnel on site.
The extent to which the Bidder should demonstrate having staff with extensive experience should be
limited to those requiring critical operational or technical skills. The personnel requirement should
therefore refer to a limited number of such key personnel, for instance, the project or contract manager
and those superintendents working under the project manager who will be responsible for major
components.

If a Contract Manager is not required then the Qualification Requirements should be appropriately
modified to reflect the changed requirement. The bidder is liable to be disqualified if it fails to meet the
personnel requirement. Therefore, great care should be taken in specifying the personnel required for
the project.

5.2 Criteria specified in the Bidding Data

Total Work Experience


S.No. Position Qualification Experience In Similar
[years] Works [years]
1 Contract Manager Graduate/ Bachelor in any 7 5
Discipline
2 Engineer – 1 No. Graduate / Bachelor in Civil 5 3
Engg.
3 Quality Control Engineer – 1 No. Graduate / Bachelor in Civil 3 2
Engg.
4 Sub Engineer – 2 Nos. Certificate Level in Civil Engg. 5 3

Note: The requirement shown above is just for illustration purpose and not to be blindly copying.

5.3 Evaluation Method

The personnel proposed by the bidder have to be checked against the specified requirement. The
bidder shall be disqualified if the bidder fails to meet the specified personnel requirement.

In case of a joint venture, personnel proposed by all partner should be added to check whether it fulfills
the specified requirement.

1. Equipment

6.1 Setting up the Criteria

The Bidder must demonstrate that it has the key equipment specified in the bidding document. Section
III Qualification Requirements requires a proposal from the bidder for the timely acquisition (own, lease,
hire, etc.) of the essential equipment in working condition for the contract duration listed in the Bidding
Document.

An inventory of construction equipment represents a high capital cost overhead to a contractor.


Consequently, not all competent potential bidders will maintain an inventory of high-value items that are
in suitable condition for major contracts. In most cases Bidders can readily purchase, lease, or hire
equipment; thus, it is usually unnecessary for the assessment of a contractor's qualification to depend
on the contractor's owning readily available items of equipment. The pass-fail criteria adopted should

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therefore be limited only to those bulky or specialized items that are critical for the type of project to be
implemented, and that may be difficult for the contractor to obtain quickly. Examples may include items
such as heavy lift cranes and piling barges, dredgers, tunnel boring machines, asphalt mixing plants,
etc. Even in such cases, contractors may not own the specialized items of equipment, and may rely on
specialist subcontractors or equipment-hire firms.

The bidder shall be disqualified if it fails to meet the equipment requirement. Therefore, great care
should be taken in specifying the equipment required for the project.

The minimum essential equipment requirement shall be:

6.2 Criteria specified in Qualification Requirements

1. Minimum essential Equipment requirement for Roadwork

No. Equipment Type and Min. Number Remarks ( as per requirement)


Characteristics Required

1 Motor Grader (100 ~ 150 HP) One For Gravel Standard Road/ Bituminous
Road

2 Bitumen Distributor (4,000 ~ One


For SBSD /DBSD or AC Pavement Road.
6,000 liters)

3 Pneumatic Roller (10-15 ton) One For all type of Bituminous Road.

4 Steel Roller One For all type of Bituminous Road.

5 Self propelled vibratory roller One For all type of Road where compaction is
(>12 ton) needed.

6 Wheel Loader (1.5 ~ 2.0 cu m) One For all type of Roads.

7 Excavator PC 200 or equivalent One For all types of Roads where machine
excavation is needed.

8 Hot Mix Asphalt Plant (>25 t/hr) One For Asphalt Concrete Pavement

9 Asphalt paver One For Asphalt Concrete Pavement

10 Chip Spreader One For SBSD/DBSD Roads

11 Bitumen Distributor One For Bituminous Roads

12 Bitumen Decanter One For Bituminous Roads

13 Tipper Truck (5 ~ 10 cu m) Four (as per Req.) For all Type of Roads.

2. Minimum essential Equipment requirement for Bridge Construction works:

No. Equipment Type and Min. Number Remarks (as per requirement)
Characteristics Required

1 Excavator PC 200 or One (as per Req.) For all types of Bridge Construction
equivalent workwhere machine excavation is needed.

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2 Pile Boring machine One Bridge with Bore Pile foundation

3 Concrete Batching Plan One For large and specialized bridges

4 Crane/Clamshell/Dragline One For Well foundation Bridge/Other Bridges

5 Tipper Truck (5 ~ 10 cu m) Four (as per Req.) For all Type of Bridges.

Note: The requirement shown above is just to illustrate the way capacity etc. are to be specified.

6.3 Evaluation Method

The equipment proposed by the bidder has to be checked against the specified requirement. The
bidder is liable to be disqualified if the bidder fails to meet the specified equipment requirement.
In case of a joint venture, equipment proposed by each all partner should be added to check
whether it fulfills the specified requirement. In case of equipment owned by the bidder, the
ownership certificate ( Blue Book, Purchased Bill, Pragyapan Patra) considered and in case of
leased equipment, the leasing agreement with the owner and evidence of ownership certificate (
Bluebook, Purchased bill Pragyapan Patra) shall be considered during evaluation.

7Use of Multiple Contracts Criteria

7.1 Slice and Package

It is a procedure whereby a large homogeneous project is sliced into smaller similar contracts, which
are bid simultaneously so as to attract the interest of both small and large firms; firms offer bids on
individual contracts (slices) or on a group of similar contracts (packages), and award is made to the
combination of bids offering the lowest cost to the Employer. Few examples where multiple contract
provision may be used are: a number of similar building types (such as health clinics, schools, houses,
etc.); irrigation canals; pipelines; rural roads; highways in similar terrain, etc.

The manner in which the works are sliced is of importance. A highway sliced "horizontally" into
separate radically different elements such as earthworks, culverts, bridges, road foundation, and paving
is not suited for bidding such individual elements as separate contracts on a "slice and package" basis,
because of potential problems with contract interfacing and assigning responsibility for any subsequent
defects. However, a highway sliced "vertically" into sections with similar features is suited, since each
slice is a complete, self-contained entity in itself.

The number of slices or individual contracts into which the project is divided is also of importance, and
will affect the complexity of the qualification evaluation and, subsequently, the bid evaluation. The
complexity of the bid evaluation increases very rapidly with the number of slices. The number of
combinations of individual contracts above five may require a complex matrix for evaluation purposes.
Four or five maximum number of slices or individual contracts is recommended.

Slices comprising a number of similar construction units together in a small area are sometimes
referred to as "lots," which are bid concurrently with other similar "lots" as part of the larger "package".

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If a number of contracts of a similar nature are to be bid simultaneously on a "slice and package" basis,
the nonstandard, contract-specific parts of the bidding documents (BOQ, Drawings, etc.) should be
prepared for each individual contract (slice) in the event that award of individual contracts will be made
to different bidders. In the bid document, the bidding data should state the qualification requirements for
each slice based upon the Employer's cost estimates. Bidders will be asked to bid for individual
contract (slice) or combination of contracts (package) in which they are interested.

It is to be noted that all bids and combinations of bids shall be received by the same deadline and
opened and evaluated simultaneously so as to determine the bid or combination of bids offering the
lowest evaluated cost to the Employer."

Use of multiple contracts provision should be used sensibly. If it is to be used, the provision should be
included in the invitation for bids and bidding data. Qualification criteria have to be specified for each
contract included in the multiple contracts. The contract(s) will be awarded to the Bidder or Bidders
offering the lowest evaluated cost to the Employer for combined packages, subject to the selected
Bidder(s) meeting the required aggregate qualification criteria specified in the Qualification
Requirements.

Example of Qualification criteria for bidding under multiple contract scenarios:

7.2 Average Annual Construction Turnover

Qualification Requirement Aggregated Qualification


Requirement Requirement
Contract A Contract B Contract A and Contract B

Average Annual Construction NRs. 36 million NRs. 27 million NRs. 63 million


Turnover of best three years
within the last ten years

7.3 Specific work experience

Qualification Requirement Aggregated Qualification


Requirement Requirement
Contract A Contract B Contract A and Contract B

Specific work experience of NRs. 30 NRs. 18 million "One contract of at least NRs.
one contract with similar size million 48 millions" or " Aggregated 2
and nature within the last 10 no. of contracts, One contract
years of at least NRs. 30 million and
another contract of at least
NRs. 18 million"

7.4 Liquid Asset and or Credit Facilities


Aggregated Qualification
Requirement Qualification Requirement
Requirement

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Contract A Contract B Contract A and Contract B
Liquid Asset and or Credit NRs. 8 million NRs. 8 million NRs. 16 million
Facilities

7.5 Personnel
Total Work Experience Aggregated
Position Qualification Experience In Similar Contract A Contract B Qualification
[years] Works [years] Requirement
Engineer Graduate in 5 3 1 no. 1 no. 2 nos.
Civil Engg.
Quality Graduate in 3 2 1 no. 1 no. 2 nos.
Control Civil Engg.
Engineer
Sub Certificate 5 3 2 nos. 2 nos. 4 nos.
Engineer Level in Civil
Engg

7.6 Equipment

Aggregated Qualification
Minimum Number Required
Equipment Type and Requirement
Characteristics
Contract A Contract B Contract A and Contract B
Two
Motor Grader (100 ~ 150 HP) One One

Bitumen Distributor (4,000 ~ Two


One One
6,000 liters)
Two
Pneumatic Roller (8 ~ 12 Ton) One One

Loader (1.5 ~ 2.0 cu m) Two


One One

Eight
Tipper Truck (5 ~ 10 cu m) Four Four

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